LONDON MARKET: Government bonds set to beat the retreat
Sunday 26 September 1999
"It could well take just one more piece of data to convince the Bank of England to move interest rates higher," said Dick Howard at Julius Baer Investments. "There's not anything on the horizon that will be helpful for gilts."
The benchmark bond fell last week, though it pared losses on Friday. Ten-year yields rose five basis points to close at 5.57 per cent, though that's down from Thursday's 13-month high of 5.64 per cent. Gilts are the worst big government bond investment in the world this year, with investors losing 3.72 per cent.
Reports and surveys aren't likely to give gilt prices any relief this week, analysts say, and may prompt investors to push yields back to their recent highs.
Consumers borrowed more in August, a report is expected to show on Wednesday. Rising consumer confidence was one reason cited by the BoE for raising rates earlier this month.
BoE policy-makers also said escalating house prices helped prompt them to increase borrowing costs. On Thursday Nationwide Building Society, one of the UK's largest mortgage lenders, will release its house price index for September.
Colt Telecom and Sema may lead UK stocks higher as investors seek companies with high growth prospects, such as those in telecommunications and technology. Sema, the computer services company, may gain as investors conclude that recent price declines left shares cheap. "Every period of weakness in this sector has provided a strong buying opportunity," Dresdner Kleinwort Benson analysts said.
Bank stocks are likely to gain after the Bank of Scotland made a hostile bid for National Westminster Bank, in the biggest- ever offer for a British bank. Barclays, Abbey National and Royal Bank of Scotland all climbed on speculation of further tie-ups in the banking industry.
Marks & Spencer may finally reverse the decline that has shaved 20 per cent off its shares since 15 July. "At some stage there has got to be real value in M&S," said Simon Smith at Capel Cure Sharp. "Management is getting a grip on the business, and even if it doesn't, it'll be a takeover target."
The FT-SE 100 index fell 1.7 per cent to 5,937.6 last week.
- 1 Artist Jamie McCartney: How The Great Wall of Vagina is a stand against 'body fascism'
- 2 Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
- 3 Tom Cruise: Reporters banned from asking actor about Scientology
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Michael B Jordan and Kate Mara handle excruciatingly awkward and offensive interview questions like pros
RideLondon 2015: Cyclist dies while climbing highest hill in Surrey during sportive
Katie Hopkins reveals fear she will die during brain surgery to cure epilepsy
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Dutch King Willem-Alexander declares the end of the welfare state
Tom Cruise: Reporters banned from asking actor about Scientology
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...
£11000 - £50000 per annum: Recruitment Genius: This financial company offer ma...
competitive + incentives + uncapped comms: SThree: Did you know? 98% of our di...
competitive: SThree: Did you know? 98% of our directors started with SThree as...